Under the impactful influence of the EU's Digital Markets Act, Apple has announced significant changes that will reshape iOS, the App Store, and browser functionality within the platform. These transformative updates are slated for implementation in the European Union with the upcoming iOS 17.4 release scheduled for March.
More Browser Options
A key shift focuses on web browsing. Currently, iOS users can choose a default browser other than Safari, but these browsers are required to use Safari's WebKit rendering engine. This restriction is being lifted, allowing any browser on iOS to utilize its preferred rendering engine, providing developers with more flexibility.
Moreover, with the rollout of iOS 17.4 in the EU, Safari is undergoing a major transformation. Users will now have the choice to select browsers other than Safari right from the start, giving them greater control over their browsing experience.
Alternative App Stores
A major shift in Apple's approach to iOS is the decision to allow alternative app stores within its ecosystem, a departure from its previous stance. Despite this, the company is implementing a stringent "baseline review" process for all apps, regardless of their distribution channel, due to concerns about potential risks to users. This process involves automated checks and human evaluations, providing concise app descriptions and functionality insights displayed to users before download.
In addition, iPhones in the EU region will have unlocked NFC capabilities. This allows alternative wallet and banking applications to utilize tap-to-pay functionality, establishing themselves as preferred methods for mobile payments.
The App Store will see further transformative enhancements, including new options for integrating payment service providers directly within a developer's app. Developers will also have the ability to facilitate payments through external links, enabling users to complete transactions for digital goods and services on the developer's external website, bringing added flexibility to the iOS ecosystem.
Revised Commission
Looking ahead, app developers in the EU will face a revised commission structure. For most developers and subscriptions beyond the first year, there will be a 10% commission rate. However, transactions related to digital goods and services will incur a slightly higher rate of 17%.
In addition to these commission changes, iOS apps using the App Store's payment processing services will be subject to a 3% payment processing fee. This fee applies to apps opting to stay within the current payment framework offered by the App Store.
Another significant aspect of this fee adjustment is the introduction of a "Core Technology Fee." iOS apps distributed through either the App Store or an alternative app marketplace will need to pay a fee of €0.50 for each initial annual installation once the threshold of 1 million installations is exceeded.
